Multiple Choice
Assume that Ariel agrees to purchase US$500,000 for C$550,000 on January 15,2017.The exchange rate at year-end is US$1 = C$0.95 and the January 15,2017 exchange rate is US$1 = C$0.97.What journal entry is required when the contract is initiated?
A) 0
B) $65,000 loss.
C) $75,000 gain.
D) $75,000 loss.
Correct Answer:
Verified
Correct Answer:
Verified
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